Wouldn’t it be nice to know when your business is about to face legal issues? Unfortunately, this is usually just a fantasy.
However, if you know what to look for, you could successfully predict situations where someone is planning to file a lawsuit targeting your business. Here are three indicators of possible business litigation.
Someone files a formal complaint
Formally complaining about a problem is often the first step an aggrieved customer, associate or employee may take. For example, a customer may file a complaint about your company with the Better Business Bureau (BBB). In unresolved employment disputes, affected workers may file an official complaint with the Equal Employment Opportunity Commission (EEOC).
Alternative dispute resolution fails
You and the other party probably tried to resolve the issue through arbitration or other forms of dispute resolution. Mediation or arbitration often helps agree on a solution, but there are no guarantees of success. When these efforts to correct the problem fail, the next step for harmed parties is filing a lawsuit.
Someone threatens to sue
It is safe to say that many people threaten litigation, even when they never intend to initiate a lawsuit. However, there is always a chance that they mean what they say and are going to sue your company. A good rule of thumb is to expect the worst. That way, you are not caught off guard when you learn about impending litigation.
Consider creating legal policies that protect your operations against business litigation before it can arise. If someone has already named your company in a lawsuit, find solutions by exploring Massachusetts civil litigation rules and procedures.